The co-operative movement in India started after the enactment of the
Co-operative Societies Act of 1904. This movement has helped the
villages to overcome their economic problems to a certain extent by
providing credit and promoting the culture of thrift and self-help
among the rural population. It is this movement that brought a shift in
the people’s habit of hoarding money inside their homes to keeping it
safely in a bank. Over the years, co-operative societies have grown in
terms of their popularity, size, volume of business, and also their
influence on the Indian economy.